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MYANMAR
Myanmar, the best investment opportunity in the world. If I could put all of my money in Myanmar, I would
Legendary Investor
Jim Rogers
HiSTORY OF MYANmAR
Myanmar, formerly known as Burma, is a strategically located country in Southeast Asia, bordered by China, India, Bangladesh, Laos and Thailand. One third of Myanmars total coastal line perimeter of 1,930 kilometres forms an uninterrupted coastline along the Bay of Bengal and the Andaman Sea. Myanmar was the richest country in Asia back in 1962 and was the worlds largest rice exporter. All these ceased after the military rule took over after coup dtat and the countrys economy declined to ruin and ironically became the poorest in the region. Economic stagnation for the next 50 years as it remains isolated from the rest of the world till its recent opening up.
GEOgRAphY
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SITUATED BETWEEN THE WORLDs TWO MOsT POPULOUs AND FAsTEsT GROWING ECONOMIEs: INDIA AND CHINA.
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34% Urbanized Population 90% Literacy Rate 40th Largest in South-East Asia 55 Million Population 45% under age of 25
MYANmARS ECONOmY
FOREIGN DIRECT INVEsTMENT IN VARIOUs SECTORs Energy - 49% (12.5 Billion)
Oil and Gas - 41% (10.4 Billion) Mining - 9% (2.2 Billion) Others - 1% (0.3 Billion)
The country is a major natural gas exporter. Other exports include oil, teak, and precious and non-ferrous metals. The extractive resource sector natural gas, timber and mining as well as power generation, are all sectors with significant FDI. Energy and mining account for 55% of Myanmars exports and 86% of its FDI.
There is also potential for Myanmar to develop exports in agricultural outputs and fisheries. Although 34% of Myanmars population live in urban areas, around 70% of the labour force is employed in the agricultural sector. Myanmar fisheries companies resumed exports to the United Stated in Feb 2013 after the sanctions have been lifted.
USD 45 Billion in 2011 USD 51 Billion in 2012 GDP is expected to reach USD 55 Billion by 2014
Source: World Bank, ADB Estimates
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The World Bank forecasts that Myanmars GDP growth at 6.3% during the 201213 financial year. Asian Development Bank (ADB) expects growth to rise to 6.7% in 2014.
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IF YOU HAVE MIssED CHINA OR VIETNAM, DO YOU WANT TO MIss MYANMAR AGAIN?
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Chinas growth rate averaged 9.22% from 1989 to 2013 Vietnams growth rate averaged 6.3% from 2001 to 2012
MYANMAR VISITORS
1,5M
Tourism Master Plan 1.5 million visitors in 2013 7.5 million visitors by 2020 Upgrade 3 airports to combined capacity of 8 million passengers annually by 2018
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New hotels are planned to serve the coming tourism boom. Include global chains such as Accor and Hilton. Singapore was the biggest hotel investor in Myanmar, beginning construction of 12 hotels and apartment complexes with total value of US$597.75 million, followed by 10 projects from Thailand worth US$235.75 million, and six from Japan costing US$183 million. There is a present severe shortage of quality hotels to support booming tourism. Out of the 8000 hotel rooms in Yangon, only 1,500 2,500 are of international standard. Against 1m tourist arrivals last year. As a result, hotel room rates in Yangon have more than tripled to US$250-300 from US$80 in 2011.
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FOREIGN EQUITY PARTICIPATION Myanmar allows 100% foreign investment in projects approved by the Myanmar Investment
Commission and mandates that the foreign partner must contribute at least 35% of the capital. The new law also states those sectors where joint ventures with local companies are permitted. Allows for 100% foreign owned companies Allows for 100% foreign capital Permit to Trade: USD 50,000 for Service Industry MIC Permit: To be prescribed by MIC according to business activity Foreign Companies allowed to lease land from the locals/government for an initial period of 50 years + 10years + 10years depending on business and industry and amount of investment 5 Year Tax Holiday Income tax 25% Double Tax Agreement with Singapore
LEGAL FRAMEWORK
MYANMAR INVESTMENT COMMISSION (MIC) Develop States economy by promoting investment projects, promote more opportunities for
investment, technical know-hows and jobs prospects.
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construct, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project. During this period the private party has the responsibility to raise the finance for the project and is entitled to retain all revenues generated by the project and is the owner of the regarded facility. The facility will be then transferred to the public administration at the end of the concession agreement,without any remuneration of the private entity involved.
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Myanmar is a party of Geneva Protocol on Arbitration Clauses Myanmar is a party of ASEAN Investment Protection Agreement Myanmar Companies Act Special Companies Act Foreign Investment Law Myanmar Investment Commission State-owned Economic Enterprises Law
Under the Directorate of Investment and Company Administration (DICA) Approving Foreign Investment Proposal Liaise between Investors and Government Handles complaints from Foreign Investors Seek approval from MIC for any changes in Co. Admin/Operations
BUILD, OPERATE AND TRANsFER (BOT) A private entity receives aconcessionfrom the private orpublic sectorto finance, design,
INCREAsINGLY, THEY HAVE sEEN GREATER INTEREsT FROM SINGAPOREAN BUsINEssMEN TO LOOK AT THE PROsPECT IN MYANMAR AND I THINK THIs Is AN EXCELLENT sTART
Tony Tan Keng Yam President of Singapore
As AN IRON FIsT HAs UNCLENCHED IN BURMA, WE HAVE EXTENDED OUR HANDs, AND ARE ENTERING A NEW PHAsE IN OUR ENGAGEMENT ON BEHALF OF A MORE DEMOCRATIC AND PROsPEROUs FUTURE FOR THE BURMEsE PEOPLE.
BiLATERAL TiES
Singapore - Myanmar
3rd largest trading partner 6th largest FDI Top FDI in Tourism 1st country to offer assistance following Cyclone Nargis
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Economic Development
Public Administration
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SOUTHERN CORRIDOR
THILAWA SPECIAL ECONOMIC ZONE Over 2,000 hectares between Thanlyin and Kyauktan townships in Yangon region
Joint Cooperation between Japan and Myanmar The SEZ project includes factories, high-tech industry, textile, labour intensive industry and manufacturing industry.
INDIA-BURMA-LAOs-CAMBODIA-VIETNAM SOUTHERN CORRIDOR Building roads and rails to the Thai-Burma border that will eventually link up the
Dawei seaport
YANGON INTERNATIONAL AIRPORT HANTHAWADDY INTERNATIONAL AIRPORT Upgrade of Yangon International Airport
SINO China BURMA OIL & GAs PIPEs and Burma signed an agreement to build a natural gas pipeline, and an
agreement to build a crude oil pipeline. The oil pipeline will have a capacity of 12million tonnes of crude oil per year. Completed in July 2013.
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Thailand, via Myanmar Greatly enhance the connectivity between the Mekong sub-region and India.
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to increase its capacity to 6 milion visitors by 2015. Hanthawady International Airport in central Bago region. This airport with a planned capacity of up to 12 milion visitors is set to complete by 2016.
Myanmar
China
Kuniming
Japans Daiwa Securities and the Tokyo Stock Exchange signed an MOU with the Central Bank of Myanmar (CBM) to modernize Myanmars securities market Securities and Exchange law will be on the countrys statute books by July 2013 International Monetary Fund is currently working with the countrys government on upgrading its financial systems and regulatory framework.
27TH SEA GAMES Held across 3 cities Naypyitaw, Mandalay and Yangon
After 1961 and 1969, this is the 3rd time Myanmar is hosting the SEA Games
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WORLD ECONOMIC FORUM 2013 First post-reforms leading international gathering to be held in the country
An unrivalled opportunity to understand and to shape Myanmars ongoing reforms and reconciliation process
A critical role in guiding the blocs ten member economies toward the planned economic integration in 2015.
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MYANMAR Is IN THE sAME PLACE CHINA WAs IN EARLY 1979, WHEN DENG XIAOPING sAID WE HAVE TO DO sOMETHING NEW. MYANMAR Is NOW OPENING UP.
Jim Rogers Legendary Investor
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IE Singapore
Visitors to Myanmar have increased exponentially from 600,000 in 2006 to 1 Million in 2012. It is expected to receive 1.5 Million visitors in 2013.
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THE sCOPE OF OPPORTUNITIEs IN MYANMAR Is IMMENsE, GIVEN ITs sIzE, POPULATION, REsOURCEs, MARKET AND RELATIVELY UNDEVELOPED ECONOMY. COMPANIEs CAN EXPECT TO FACE IMMEDIATE DEMAND FOR THEIR PRODUCTs OR sERVICEs ACROss A WIDE sPECTRUM OF INDUsTRIEs. As MYANMAR DEVELOPs ITs INsTITUTIONs, THE PROsPECT OF LEVELLING UP WITHIN A sECTOR Is THERE.
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Myanmar is abundant of natural resources with a land mass of approximately 677,000 sq km.
The country has a young and educated labour force. 45% of the Population are under the age of 25 and a high literacy rate of 90%.
The government is cutting layers of bureaucracy, shoring up infrastructures and instituting financial reforms.
Foreign Direct Investment catapulted from USD 200 Million in 2007 to USD 20 Billion in 2011. Singapores foreign investment into Myanmar is USD 600 Million and is the top foreign investor in the hotel sector.
Amendments to the Foreign Investment Laws in November 2012 are pro foreign investors and have a strong legal framework which safeguards foreign investment. Myanmar is Asias final frontier. It is at where China was in 1979. It is the last country in the Mekong Sub-Region and the Indo-China area to open up. Myanmar will experience the leapfrogging phenomenon and double digit GROWTH in the following of liberalization.
Sentosa 1972
Sentosa Present
Theres no way we can go back in time but we can educate ourselves using lessons of the past to foresee the future and look for SIMILAR OPPORTUNITIES.
MYANmAR IS At tHE StAGE WHERE SINGAPORE AND CHINA WERE 30 YEARS AGO. THE tImE IS NOW FOR MYANmAR.
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